There are obvious signs on the property market that the recovery of the private home sector, which started last year, will continue in 2018 as well. Experts say that this is happening due to a steady demand, a series of brand new launches, and improved impressions about this sector. One good example can be the launch of the Grandeur Park Residences, which took place last March in Tanah Merah. With the occasion of this launch, the developer of the property managed to sell more units than were officially launched, which shows that there is an increased interest in this type of properties.
Both the prices and rents in this sector are expected to steadily increase in the following months, as a result of the demand that remains the same and the fact that not many homes were completed up to this point. Still, this situation is not going to last for too long, as the Government already sold land that can lead to the creation of 19,900 new units, which can become available for sale next year and provided in a complete manner starting with 2021. To this number, we can also add the 19,755 units that are not yet completed or sold, which waited to get the required approval at the end of 2017.
While statistics showed that prices in the residential sector were on a steady drop since 2013, things started to improve in 2016, when the number of transactions grew while the prices were still dropping. But, in 2017, the first increase was recorded, as prices went up by 1.1% while the number of transactions recorded an impressive increase of 53%. In this background of increases, the Core Central Region enjoyed a 1.4% increase, while the rest of the region and the fringe of the city recorded a 1.8% increase. The situation of rented properties also improved, increasing by 7.8%, although it is expected to freeze in 2018 when a large number of new properties will be available for sale. Of course, the occupancy rate of rented units will grow again once the available new units will start to be assimilated into the market, making people look for alternatives until new units will be provided.
Developers noticed a significant improvement in their number of sales as well, as they managed to sell more units in 2017 than they did in 2016, recording a growth of 22%, which is rather significant. Stimulated by the increase in prices and current demand, it is expected that developers will release more new launch condos in 2018, enjoying the positive trend in the sector of private residences.
Refer to link for more info, http://www.straitstimes.com/business/property/private-home-recovery-set-to-continue-this-year
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